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Global stock market overview, U.S. jobs report awaited

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The stock market held its ground on Friday, waiting for US employment figures at midday, an indicator scrutinized by the U.S. Central Bank.

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Europe was down 0.16%, as was London (-0.17%), while Frankfurt (+0.13%) and Milan (+0.18%) were up.

As for Asia stock market, Tokyo gained 0.33% despite new records of Covid-19 infections, driven by Wall Street’s good performance the day before. Hong Kong closed almost unchanged (-0.10%) and Shanghai lost 0.24%.

The New York Stock Exchange rebounded Thursday, setting new records for the Nasdaq and the S&P 500.

Investors have been waiting for the employment report since the beginning of the week, which will be the main focus of attention today.

Michael Hewson, analyst at CMC Markets UK, summarizes this week’s ADP report as “weak,” falling to 330,000 (private sector job creation) well below expectations of 695,000, while prices remain high.

Today’s figures will be closely scrutinized by the United States. Historically, the Federal Reserve (Fed) has stated that it intends to maintain an accommodating monetary policy until the U.S. economy and job market have fully recovered.

Since the beginning of this year, financial markets have reached record levels due to an abundance of liquidity provided by central banks.

Investments are therefore not pleased with a tightening of monetary policy.

In spite of all the “speculation about the impact” of the jobs report “on a possible reduction in asset purchases”, Michael Hewson believes “that no matter what the numbers are today, the picture won’t change much”.

“No one on the Fed’s monetary policy committee has any idea what the U.S. economy will look like a month from now, let alone a year from now,” he concluded.

On the sovereign debt market, the U.S. 10-year yield rose to 1.24% from 1.22% at the previous day’s close.

In terms of indicators, the level of private salaried employment in France returned to its pre-crisis level in the second quarter, according to a preliminary estimate.

As a result of recurring supply problems, Germany’s industrial production fell for the third month in a row in June.

In Japan, household consumption declined by 5.1% in June from a year ago, well below expectations.

The London Stock Exchange confirms its targets

London Stock Exchange (LSE) shares rose 3.67% to 7,742 pence. It announced higher results for the first half of the year and confirmed its targets despite cost increases to be expected in the second half.

Oil up, bitcoin above $40,000

Around 08:30 GMT, the barrel of Brent North Sea for delivery in October rose 0.73% to 71.81 dollars in London.

In New York, September’s WTI barrel gained 0.64% to 69.53 dollars.

Euros lost 0.20% against the greenback, trading at 1.1812 dollars.

Bitcoin was stable (-0.15%) at 40,835 dollars.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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